Disposition of Real Property

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Table of Contents Overview ........................................................... 04 Code of Federal Regulations General Services Administration

Disposition Examples......................................... 06 Washington, DC San Fransisco, CA Los Angeles, CA Chicago, IL Seattle, WA Denver, CO Boston, MA Portland, OR Miami, FL Philadelphia, PA

Document Exhibits ............................................. 08 Exhibit A - City of Minneapolis Disposition Policy Exhibit B - City of Minneapolis Disposition Process Exhibit C - City of Minneapolis Disposition Procedure

The information contained in this document is for informational / educational purposes only. All published works outside our own, have been footnoted and linked, according to the best of our understanding.

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Overview Disposition policies and procedures for cities with real estate tied to federal regulations can vary depending on the specific goals of the City of Saint Paul.

The following pages reflect a compiled series of examples, which have been adopted by other cities. They may be useful in the formation of disposition policies and procedures for Saint Paul.

Code of Federal Regulations The CFR is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government.

Title 2, Subtitle A, Real Property Part 200 / Subpart D / Property Standards § 200.311 Real property Disposition. When real property is no longer needed for the originally authorized purpose, the non-Federal entity must obtain disposition instructions from the Federal awarding agency or pass-through entity. The instructions must provide for one of the following alternatives: CLICK HERE for the full CFR Title 2 publication.

Title 41, Subtitle C, Federal Property Management Regulations System Part 102-75, titled "Real Property Disposal," of the CFR has the following sections: Subpart A: General Provisions (§§ 102-75.5 - 102-75.20) Subpart B: Utilization of Excess Real Property (§§ 102-75.25 - 102-75.245) Subpart C: Surplus Real Property Disposal (§§ 102-75.250 - 102-75.944) Some relevant sections of Part 102-75 include: § 102-75.936: When an agency can dispose of an easement § 102-75.250: What general policy the disposal agency must follow concerning the disposal of surplus This part of the CFR provides detailed regulations and guidance on the disposal of federal real property, including the processes, procedures, and requirements that federal agencies must follow when disposing of real property assets.

To find the most up-to-date information and specific details, you should refer to Title 41, Subtitle C, Part 102-75 of the Code of Federal Regulations. Keep in mind that regulations can change over time, so it's important to verify the latest version via the U.S. Gov Publishing Office or another reputable source.

CLICK HERE for the full CFR Title 41 publication.

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General Services Administration The GSA states that funds received from federal grants may be used to purchase fixed assets, if allowed by the awarded federal grant contract. When the fixed asset is no longer needed for the project funded by the grant, the fixed asset may be disposed. In the following excerpts (shown in italics below) from Federal Grants Management Handbook, guidelines for the disposal of such assets are outlined as follows: Real Property includes buildings, land (including improvements), and structures.

If a grantee can no longer use the real property, the federal agency will direct the grantee to: -

Sell the property and pay the federal agency its share of the proceeds according to matching or cost-sharing ratios;

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Retain the property and pay the agency its share of the market value of the property; or

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Transfer title to the federal agency and receive its share of the market value.

If... the current market value of the equipment is less than $5,000, the grantee may sell or retain it without compensating the federal government.

However, in absence of instructions from the awarding agency within 120 days after the end of federal support of the project, grantees may either retain or sell the equipment and pay the federal agency their share of the market value.

I addition, as it pertains to the use of ARPA funds for any of these transactions the USEDA has a set of FAQ’s which are very helpful. They can be found HERE. The National League of Cities also has a set of FAQ’s which can be found HERE. A knowledge base from John Hopkins University can be found HERE. It is recommended that the City of Saint Paul legal / accounting departments, review the disposal of fixed assets annually to determine if proceeds from the sale of any fixed assets must be remitted to the federal agency that originally awarded the funds.

CLICK HERE for the full GSA publication.

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Examples Cities across the United States have implemented various disposition policies for federally funded land. These policies often reflect the unique needs and circumstances of each city. Here are some examples of cities with such policies: 1. Washington, DC The nation's capital has specific policies for federally owned land, often emphasizing mixed-use development and public spaces. For example, the development of the Wharf area along the Potomac River involved a public-private partnership that included requirements for waterfront access, affordable housing, and community benefits. § 10–801. Authorization; description of property; submission and approval of resolution; reacquisition rights; notice.

2. San Francisco, CA San Francisco has policies that address the disposition of federally funded land with a focus on affordable housing and environmental sustainability.

These policies often require developers to include affordable housing units in their projects, and they prioritize the use of federal land for the public good.

Sec. 23A.11. Disposition and Utilization of Surplus and Underutilized Property.

3. Los Angeles, CA Los Angeles has implemented policies to encourage affordable housing development on federally funded land. The city often requires developers to set aside a percentage of units as affordable housing and offers incentives like density bonuses to promote affordability.

Public Lands for Affordable Housing Development | Sec. 7.76. Disposition of Personal Property No Longer in Use.

4. Chicago, IL Chicago's disposition policies aim to revitalize neighborhoods and encourage economic development. They may include incentives for developers to invest in underserved areas, such as tax incentives or grants.

30 ILCS 605/ State Property Control Act.

5. Seattle, WA Seattle has policies that emphasize environmental sustainability, affordable housing, and equitable development. Federal land dispositions often involve requirements for sustainable building practices and contributions to affordable housing initiatives.

Title 79 RCW: Public Lands | Surplus City or Town Property

6. Denver, CO Denver's policies for federally funded land often prioritize transit-oriented development, which encourages development near public transportation

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hubs. This approach aims to reduce reliance on cars and promote sustainable urban growth.

Buying and Selling Land - Colorado State Land Board

7. Boston, MA Boston's disposition policies often involve partnerships with federal agencies and a focus on leveraging federal land for public use. For example, the redevelopment of the Seaport District included extensive public engagement and mixed-use development guidelines.

Massachusetts General Law (MGL) Chapter 30B | BDPA Owned Land

8. Portland, OR Portland's policies often emphasize smart growth and transit-oriented development, aligning with federal goals for sustainable urban planning.

Disposition policies encourage developments near transit stations and may require affordable housing components.

ADM-13.02 - Disposition of City Real Property | Disposition of City Real Property Stages

9. Miami, FL Miami's disposition policies frequently include affordable housing requirements and community benefits as conditions for the development of federally funded land. Developers may need to incorporate affordable housing units or contribute to a housing trust fund.

Sec. 2-11.2.1. - Disposition of county surplus personal property. | Process to Lease, Purchase or Secure Rights to Property

10. Philadelphia, PA Philadelphia's disposition policies often prioritize affordable housing and community development. They may require developers to incorporate affordable housing units and collaborate with local community organizations.

Disposition Policies City of Philadelphia | § 16-403. Disposition Policy: General Provisions.

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EXHIBIT A

CLICK HERE to download the PDF file.

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EXHIBIT B

CLICK HERE to download the PDF file.

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EXHIBIT C

CLICK HERE to download the PDF file.

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